Dan,
Excellent write up on ACV Vs Stated value,Etc.
As a claim manager of a major personal lines insurance company (for 30
years) I can confirm that these arguments have gone on since I can remember.
There is not even agreement within the company departments. Believe it or not
the claim department, at my company, resisted the sale of these (stated
value) policies for years as we felt that we were in fact charging an
additional premium for less coverage. the standard indemnity policy provides
for an Actual Cash Value at the time of loss. There is no dollar limit on
this policy. The so called Stated Value policy, in fact, has a maximum limit
and the contract precludes paying any more than the "stated" amount.
The problem always comes when the claim is filed. I can't tell you how many
old, worn out rags that I have seen that the owner claimed as a classic,
collectors model car. Everyone has heard about the '57 Chev. Bel Air 2dr H/T
w/ fuel injection, 283 V8
that brought $50,000 at some auction, somewhere. Unfortunately that doesn't
make all 57 chevys worth anything more than scrap value. As a practical
matter, a similar '57 Nash Ambassador might not be worth more than $500.
The key to this problem is finding the acv of any given car, at the time it
is destroyed.
The records of restoration costs are valuable but, not completely convincing,
as we all should know from experience, it is very easy to spend in excess of
the value of a car, restoring it.
The most convincing evidence is testimony of a recognized appraiser of the
type of car you own. In addition there is the use of comparables, records of
actual sales of cars like yours in similar condition and of nearly the same
age and model.
I don't sell insurance and am presently retired so I don't get involved with
claims any longer so please don't ask me for a value on your car.
I also have no personal knowledge of the so called Classic or Specialty Car
insurance companies. My guess is they probably offer a version of the Agreed
Value policy. In any case I would recommend that you choose you coverage
carefully and be prepared to prove the value of your car in the event of a
loss.
It would seem to me that, with the time, money and effort we put into these
cars we should be excellent risks. ( That's probably why I was never asked to
be an underwriter)
Sorry for the length of this epistle but this is a pretty complex subject.
Doug Ross
Rosebud Racecar
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